opf internship final

7/31/2019 Opf Internship Final

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CHAPTER # 1

1. Introduction to the Organization

1.1 Introduction

Overseas Pakistanis Foundation is an organization for welfare of Pakistanis working abroad

and their dependents in Pakistan with its Head Office in Islamabad and Regional Offices at

Karachi, Lahore, Peshawar, Quetta and Mirpur (AJK) and sub office at Multan.

This organization was,

Established under Emigration Ordinance, 1979.

Registered under Companies Ordinance on 8th July, 1979 as Company Limited by

Guarantee of Government of Pakistan.

OPF is controlled by a BOG (Board of Governors) headed by the Federal Minister

for Labour, Manpower & Overseas Pakistanis as its Chairman.

1.2 Vision

Overseas Pakistanis Division aims at providing better services to overseas Pakistanis through

improved facilities at airports, setting up suitable schemes in Housing, Education and

Healthcare sectors; facilitating the rehabilitation of returning overseas Pakistanis, besides

ensuring that Community Welfare Attaches (CWAs) maintain close links with them to help

resolve their problems and locate new job opportunities for intending overseas Pakistanis.

1.3 Functions

Undertaking Welfare Schemes & Personalized Services for OPs.

Establishment of Educational Institutions.

Provision of Health Facilities.

Development of Housing Colonies.

Assistance to overseas Pakistanis and their dependants at time of distress.

Facilitation of incoming and outgoing Overseas Pakistanis at International Air ports

of Pakistan.

Encouragement of Foreign Exchange Remittances through legal channels.

Settlement of dues and outstanding claims of OPs with their employers abroad.

Economic rehabilitation of overseas Pakistanis.

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2. Overview of the Organization

2.1 Main Objectives

To advance the social welfare of the Pakistanis working or settled abroad and their families in

Pakistan by identifying their problems and by contributing to their solutions.

To Establish & Manage:

Housing Schemes.

Educational institutions.

Foundation offices & branches.

To Receive & Manage:

Welfare Fund created under the Emigration Ordinance 1979.

The custodian-ship of security deposits of the overseas employment promoters.

To perform miscellaneous functions such as:

Grant of scholarship to the deserving Overseas Pakistanis children and grants to

community centers, mosques, libraries etc.

Make policies, rules and regulations necessary for the management of the Foundation.

Make policies, rules and regulations necessary for the management of the Foundation.

2.2 Sources of Finance

The major sources of finance of the Foundation are:

Welfare Fund created under Emigration Ordinance, 1979 and rules made there under.

Profit on Welfare Fund.

Any other source.

2.3 Board of Governors

The number of Governors shall not be less than seven but not exceeding nineteen.

All the Governors are appointed by the Federal Minister.

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They are not entitled to any remuneration except that the actual expenses incurred

by them during the course of performing their duties.

The board appoints a paid Secretary of the foundation who shall also be the

Secretary of the board.

2.4 No Of Employees

Total numbers of employees including contractual employees at the end of the year 2010 were

1,207 (According to the Admin records and audited Annual Report of OPF Year 2010).

2.5 Organizational Structure of OPF

Reference: Admin record & www.opf.org.pk

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Managing Director

J.D.R.O.

Peshawar

G.M.R.O.

Mirpur(AK)

J.D.RO

Lahore

G.M.R.O.

Quetta

G.M.(South)Karachi

GMInternal

Audit Div

GMWelfare

&Services

SecretaryOPF

&DirectorAdministration

GM

Housing&

Works

DirectorOPPT/MIS

DirectorEducation

DirectorHR

DirectorFinance


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CHAPTER # 2

Departments of Overseas Pakistanis Foundation (OPF)

Housing and Works Division

Education Division

Overseas Pakistanis Pension Trust (OPPT)

Marketing Division

Welfare & Services Division

Administration & HRM Division

Internal Audit Division

Finance Division

1.1 Housing & Works Division

To cater for the Housing need of Overseas Pakistanis and to provide them residential facilities,

OPF has planned and established a number of housing schemes in different cities of the

country.

The plots created in these schemes are sold to Overseas Pakistanis in OPFs housing schemes

located at the prime locations in the cities of Islamabad, Lahore, Gujrat, Peshawar, Larkana,

Dadu and Mirpur (AK)

1.1.1 OPF Housing Schemes

Valley Zone-V Islamabad

Raiwind Road (Phase-I) Lahore

Raiwind Road (Phase-II) Lahore

Raiwind Road (Extension) Lahore

Peshawar

Dadu

Gujrat

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Larkana

Mirpur (AK)

Rawat

i. Valley Zone-V Islamabad

OPF Valley Zone-V Islamabad is located on Japan road alongside the Sawan River, about 24

kilometers from Zero point. M/S NESPAK has been pointed the project consultant for

designing and planning of the scheme.

ii. Raiwind Road (Phase-I) Lahore

OPF Housing Scheme Raiwind Road (Ph-1) Lahore is located about 5 kilometers from Thokar

Niaz Baig. The scheme is completely developed.

iii. Raiwind Road (Phase-II) Lahore

OPF Housing Scheme Raiwind Road (Ph-II) Lahore is planed to be developed over an area of

App 627 Kanals 03 marlas.Out of which land measuring 559 Kanals and 4 marlas has already

been purchased whereas land measuring 67 Kanals and 19 marlas including existing pockets

and additional land adjoining to the boundary of the scheme area are required to be acquired

through Land Acquisition Act 1894.Efforts are underway to acquire/purchase for existing

pockets in the scheme area. Process for appointment of consultants for planning and designing

of the scheme is under process for approval.

iv. Raiwind Road (Extension) Lahore

OPF Housing Scheme Raiwind Road (extension) Lahore is located about 5 kilometers from

Thokar Niaz Baig adjacent to the phase-I.

v. Peshawar

OPF Housing Scheme Peshawar is located short of the main city, about 2.5 Kilometer from the

main GT road, near the Ring road. The scheme is planned over an area of 991 Kanals. The

infrastructure i.e. road, water supply and sewerage network is completed, whereas the external

electrification work of scheme is in process through PESCO. All residential plots have already

been allotted. Commercial plots in the scheme will be sold through open auction after of the

scheme. Possession of plots is also being handed over to those allotees who have cleared the

dues and interested for construction of houses on their plots.vi. Dadu

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OPF Housing Scheme Dadu is located on Dadu-Moro-Road. Total area of the scheme is 168

Kanals.

vii. Gujrat

OPF Housing Scheme Gujrat is located on Bhimber Road. It is spread over an area of 296

Kanals.The scheme is completely developed. Respective alloties have been asked to complete

construction of houses on their plot up to 30th September, 2012.

viii. Larkana

OPF Housing Scheme Larkana is located on Noudero Road. It is spread over an area of 228Kanals of land. The scheme is completely developed and all the 430 residential and 24

Commercial plots in the scheme have already been allotted.

ix. Mirpur (AK)

OPF Housing Scheme Chatterpari Mirpur (AK) is located short of Mirpur city towards Dina.

The scheme is completely developed. Total 2,894 Residential and 187 Commercial plots in the

scheme were created.2, 547 Residential and Commercial plots have already been allotted to the

respective alloties and sale of remaining plots is suspended.

x. Rawat

OPF Housing Scheme Rawat, Rawalpindi is planed over an area of about 754 Kanals.Out of

which land measuring 624 Kanals has already been purchased from the land owners will

remaining 130 Kanals of existing pockets in the scheme area are to be acquired through land

Acquisition Act,1894.

xi. Allocation of Two Sectors D-13 & E-13 for Overseas Pakistanis

It has been decided by the OPF BOG (Board of Governors) to reactivate the housing sector of

D & E-13.The Prime Minister of Pakistan has also very kindly consented with the proposals

summary for formal approval by the Federal Cabinet has already been sent.Necassery steps are

under way to finalize the modality of joint venture between OPF and CDA. After signing of

Memorandum of Understanding (MOU) and formal approval by the Federal cabinet,

acquisition process of land initiated by the OPF /CDA.

1.2 Education Division

Education Division was established in 1989 with the objective to look after the needs of the

children of Overseas Pakistanis in Education sector. In order to provide the quality education to

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the children of Overseas Pakistanis, OPF has established educational institutions all over the

country.

Twenty One OPF Public Schools and three Colleges at Rawalpindi and Islamabad have been

established so far. These institutions follow English as medium of education, lying due

emphasis on local languages and are affiliated with the Federal and respective Provincial

Boards of education and University of London and Cambridge for O/A levels purposes.

Due attention is given to the extra curriculum activities of the students. The total strength of

students is App 14, 058, with the number of OPs children is around 1,508.

1.2.1 CollegesOPF has established Three Colleges.

OPF Girls College F-8/2 Islamabad with hostel facilities.

OPF Boys College, H-8 Islamabad.

OPF Girls College, Rawalpindi

1.2.2 Public Schools

21 Public Schools established at:

Punjab (8) - Sialkot,Multan,Sheikhupura,Bhalwal,Dipalpur,

Gujrat, Kalar Sayedan, PakPattan.

Sindh (4) - Dadu, Larkana, Sanghar, Badin.

N.W.F.P (3) D.I.Khan, Mansehra, Hangu.

Balochistan (3) - Quetta, Turbat, Pashtoonabad

AJ & K (3) - Mirpur, Muzaffarabad, Kotli

1.2.3 Projects in Hand -CWIP

School Building Sheikhupura

School Building Hangu

Girls College Building Rawalpindi

Girls College & Hostel Building at Quetta.

Commercial Building At Lahore

1.3 Overseas Pakistanis Pension Trust (OPPT)

OPF has established a Self Contributory Pension Scheme for Overseas Pakistanis.

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i. Membership of the scheme is voluntary and is open to all overseas Pakistanis.

ii. Contributions by members are at fixed rates, for a predefined period.

iii. Contributions received are invested in profitable investments and earnings net of all

costs are credited to individual pension accounts of the members.

iv. Monthly Cash Stream Pension calculated on the basis of the annual earnings in each

account becomes due on maturity.

v. Option is available for total withdrawal from pension scheme at any stage.

vi. All members of the scheme are covered through an insurance package arranged through

State Life Insurance to ensure immediate pension payment to family without anyfurther pension contributions, in case of death or disability of a member before

maturity.

1.3.1 PENSION PLANS (See Appendix 1).

Current Position/Achievement

Total amount received in US $ 2.50 Million Equivalent to Pak rupees 149.562 Million.

Total Members = 301

1.4 Marketing Division1.4.1 Magazine Yaran-e-Watan

OPF publishes a monthly magazine Yaran-e-Watan to update the Overseas Pakistanis about the

schemes of their interest and other related information.

1.5 Welfare and Services Division

The main services provided by this department are as follows,

1.5.1 Services Provided to Overseas Pakistanis at OPF

Transportation of Dead Bodies

Hotel facilities for Incoming Overseas Pakistanis

Ambulance Service (free of cost)

Complaint Cell

Final Dues

Study Tours to Pakistan for Overseas Pakistanis students

Foreign Exchange Remittance Card

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Compensation /Assistance to the Gulf war affectees

Free Fax Service

i. Transportation of Dead Bodies

In the event of death of any Pakistani worker abroad, dead body of the deceased is transported

back to Pakistan through PIA on charge collect basis. Meaning to say, PIA transports the dead

body on the production of certificate by the Pakistan Mission and payment is made to PIA by

OPF in Pak rupees after transportation of dead body. This facility provided by OPF free of cost.

ii. Hotel facilities for Incoming Overseas Pakistanis

OPF is its endeavor to enhance services to its members has arranged for hotel package for

Overseas Pakistanis offering specially discounted rates for the best accommodation.37

hotels/motel shall offer this facility on discounted rates to Overseas Pakistanis on the

presentation of OPF membership card.

iii. Ambulance Service (free of cost)

OPF also extends all possible help and provides the facility of an ambulance free of cost from

air port to deceased /disabled Ops native town/village. So far, this facility has been provided in

1020 cases.iv. Complaint Cell

OPF has received about 25,805 complaint of various Overseas Pakistanis for varies individual

cases regarding telephone,Sui gas,water,electricity, bank problems, crime and property

disputes. Out of these, about 18,880 cases had been settled.

v. Final Dues

A total of 12,306 cases of blood money, death compensation, disability/family pension,

insurance claims and all types of dues of Overseas Pakistanis are under process and are being

pursued through Pakistani Mission abroad. Welfare & Services division is approaching the

entire concerned mission abroad to expedite the action required for early settlement of these

cases. On account of OPFs persistent efforts, it has succeeded in getting 5,601

vi. Study Tours

OPF has been organizing study tours for the younger generation of Overseas Pakistanis settled

in various countries, particularly in Western Europe and North America. The purpose of such

tours is to educate them about socio-economic developments in Pakistan and to improve their

awareness of their culture heritage.

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In the past the Foundation has organized 13 such tours involving 151 male and 93 female

students. The result have been very encouraging, as the participants have described these tours

to Pakistan as a unique and lifetime experience, acquainting them with Pakistani culture,

heritage and current level of development .Within a span of twenty days they are able to know

more about Pakistan then their accumulated stay abroad.

vii. Foreign Exchange Remittance Card

Special Allowance for Foreign Exchange Remittance Card Holders:

OPF has launched a new scheme called the Foreign Exchange Remittance Card (FERC)

Scheme on behalf of Ministry of Finance to encourage remittances by Overseas Pakistanisthrough normal banking channels. Under which non-resident Pakistanis remitting foreign

currency equivalent to at least US $ 2,500/- per annum and US $ 10,000/- or more per annum

to Pakistan shall be issued Silver and Gold cards respectively, which would make them entitled

to the following facilities:

i) Separate Counters for special handling at Arrival and Departure lounges at airports

(These Counters are become operational from 1st September 2001 at all the

International airports of Pakistan.)

ii) Free issuance and renewal of passport on an urgent basis.

iii) Duty free allowance of personal baggage of a value of US $ 1000/-(in the case of

those who remit US $ 2,500/-) and US $2,000/-(for those who remit US $ 10,000/-

or more) during calendar year.

iv) A cardholder shall be entitled to import the following items duty free provided that

these are within the limits of permissible allowance to the Silver or Gold card

categories of worth 1,000/ US $ 2,000/ US $ respectively:

Household items of any type operated only by solar energy.

One deep Freezer or Refrigerator operated by Gas.

Gas appliances including cooking range (not more than one of any item).

One Video cassette player or VCR(video cassette recorder) or One VCD or DVD and

Items of professional use.

The duty credit under this scheme shall not be utilizable on import of vehicles.

NOTE: The Incentives are available for one year from the date of issuance of remittance cards.

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viii. Compensation /Assistance to the Gulf War Affectees

OPF played a major role during Gulf war crises. A large number of Overseas Pakistanis arrived

in Pakistan from Kuwait without any belongings. At the time of their arrival in Pakistan, camps

were established by the OPF at Karachi,Lahore,Quetta and Taftan border to facilitate the war

affectees.These affected Overseas Pakistanis were paid a cash compensation of Rs 6,000/-

each.OPF contributed a huge amount of more than Rs 50 million for affectees at the time of

their arrival in Pakistan. After the Gulf war the task of compensation claims of the war

affectees was assigned to the OPF by the United Nations Compensation Commission (UNCC)ix. Free Fax Service

In case of an emergency the dependents of Overseas Pakistanis in Pakistan are provided free

fax facility by OPF Fax machines have also been installed at OPF head office as well as

Regional offices. OPF has introduced e-mail facilities for its members using the address

[email protected].

1.6 Administration and HRM Division

Strategically, perhaps the most important division at the head office is responsible for humanresource management, including recruitment staff training and evaluation. The division also

handles matters relating to administration. This division operates on future oriented strategy

focusing on employees personal and professional growth.

Staff development activities are geared to enhance their capabilities for applying the knowledge

and facts towards development of practical situations. Under Foundations human resource

management policy, it develop and groom its management personal for positions of greater

responsibilities analytical, interpersonal, conceptualized and specialized skills to enable them

understand cause-and-effect relationships and to think logically.

1.6.1 HR Process in OPF

In OPF an effort to anticipate future business and environmental demands on an organization

and to provide qualified people to fulfill that business and satisfy those demands. HRP includes

talent inventories, human resource forecast, action plans, control and evaluation.

1.6.2 Methods to Forecast HR Needs

The purpose of human resource forecasting is to estimate labor requirements at some future

time period. In OPF there are two main methods of forecasting.

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Forecasting External Human Resource Supply

Forecasting Internal Human Resource Supply

1.6.3 Forecasting External Human Resource Supply

Overseas Pakistanis Foundation regularly makes projections of external labor market

conditions and estimates of the supply of labor to be available in general categories. This

procedure of forecasting is helpful for the Organization find such projections of the external

labour market to be helpful in preventing surplus or deficits of employee.

1.6.4 Forecasting Internal Human Resource Supply

In Overseas Pakistanis Foundation under the method of internal forecasting a reasonable

starting point for projecting an Organization, future supply of labors its current supply of labor.

Under this method the simplest type of internal supply forecast is the succession plan.

Succession plan may be developed for management, non-management employees or both in

OPF this process for developing such a plan includes setting a planning horizon, identifying

replacement candidates for each key position, assessing current performance readiness for

promotion, identifying career development needs, and integrating the career goals of

individuals with Organization goals.1.6.5 Recruitment and Selection

In Overseas Pakistanis Foundation the process of recruitment and selection is very ethnic and

comprehensive as compared to the other organization in Pakistan. Although they adopted the

Government procedures but it give more accuracy and competency. All the selection and

recruitment are made purely on merit according to provincial quota of Government.

1.6.6 Sources of Candidates

Following are two main sources of candidates used in recruitment / selection process in OPF.

Internal Source

External Source

Procuring competent personnel requires positive recruitment efforts and the development of a

variety of recruitment sources. These sources must consider not only the nature and conditions

of the external labor market, but also the presence of qualified personnel who are

available to fill vacancies through internal promotions or transfers. Keep in mind the

requirement activities are integrated with diversity and Equal Employment Opportunity (EEO)

initiatives. Staffing needs must be anticipated sufficiently in advance to permit the recruitment

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and development of fully qualified personnel.

For proper administration of a cadre or post, the appointing shall cause seniority list of the

members for the time being of such cadre or post to be prepared but nothing herein shall be

construed to confer any vested right to a particular seniority in such cadre post.

1.7 Internal Audit Division

All organizations have strengths and weaknesses in their functional areas of business. For

analyzing the internal situation of the organization with regard to its management, marketing,

finance, operations and research and development, internal audit is performed. The internal

audit is executed parallel to the external audit. This process provides more opportunity for the

participants and the managers to understand the key areas within an organization.

1.7.1 Key Internal Forces

i. Marketing

ii. Finance

iii. Accounting

iv. Management

v. Management Information System

vi. Production/Operations

The audit division is responsible for checking and reporting on the management compliance

with the boards policies and directives, as also the prudential regulations and other directives

of the Companies Ordinance 1984. However their role is not intended to just that of fault

finding; but also guiding and assisting to Regional offices and other Departments in improving

their operations.

The division is responsible for evaluating every aspect of the OPF's operations with the goal of

improving the effectiveness of risk management and internal control. There is also a regional

audit function attached to each area office; the nature of this business is of more quality

assurance rather than strictly audit. The regional audit report to the area General Manager, and

assist them in ensuring that there is proper compliance with all the relative directives, and also

that customer service standards are maintained and improved, at the offices in the area.

1.8 Finance Division

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Responsible for book keeping and accounts, this division at head office, prepare all financial

returns and the MIS through its management-reporting wing. The division is actively involved

in preparing market comparative analysis, consolidation of OPF's budgets, Salary of

employees, preparing employees Gratuity and Provident funds, its monitoring and constant

review of various financial indicators.

Finance division works as the backbone for the OPFs operations. The division, which reports

directly to the Finance Director and Chief Executive of the OPF, has been instrumental in

preparation of Foundations business plans and future strategies. The budgetary performance

are constantly reviewed and through a sophisticated " monthly performance report which is acomputer based program, the division provides feed back to the senior on strategic issue like

reasons for budgetary variance and methods to arrest negative performance factors.

Preparing the Foundations annual accounts and coordinating external audit is also a direct

function of the finance division. Through the dedicated efforts of staff at this division, the

Foundation enables it self to meet its requirements.

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CHAPTER # 3

1. Internship Experience

One of the most important aims of the student life is to express his/her correctly and

adequately. This was the believe in my mind when I first decided to go to Overseas Pakistanis

Foundation to complete my internship program.

Determined, Confident and Persistent in the pursuit of knowledge and learning, I was on my

way to OPF Head Office Shahraye Jamhuriat G-5/2, Islamabad early morning of January 1,

2010. Just a few days before, I had given the exams of my final semester. Normally I wanted

rest and recreation in July after the tiring class but this time I was anxiously waiting for the

start of my internship.

1.1 Structure of the Finance Department

There are 24 employees working in the finance department at different positions and handling

different financial tasks like preparation of Gratuity, Provident fund, Salaries of employees

Bank accounts, Deposits and Investments etc.

1.1.1 Functions of Finance Department

i. Budget

Preparation & compilation of annual Budget Estimates for presentation to the

Board of Governors for its approval.

Effective budgetary controls by periodic review.

ii. Accounts

Maintenance of the Books of Accounts.

Preparation of periodic and annual accounts, as per statutory provisions.

Presentation of annual audited accounts to the SFC and the Board of Governors

for its approval.

iii. Financial Discipline

Instituting a proper financial system.

Maintenance of financial discipline and effective control, to safeguard interest

of OPF.

To render financial advice and guidance to the various Divisions and Offices of

OPF.

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Pre-audit and processing of various payments.

To keep effective control over expenditure in accordance with the approved

budget estimates and delegated financial powers.

iv. Collection of Welfare Fund and Financial Management

Maintenance of the welfare fund collection bank accounts.

Reconciliation of welfare fund.

The Welfare Fund receipts are exempted from I. Tax since assessment year

1992-93

Maintenance of bank accounts of OPF.

Investment of surplus funds in long terms and short terms securities / schemes, as

per Government instructions / policies.

Maintenance of investment accounts.

Periodic review of investment portfolio.

Negotiation / meeting with financial institutions for better rate of profit.

Financial review of various proposal / activities initiated by various Divisions

for consideration of Managing Director and approval of the Board of

Governors.

To arrange meetings of the OPF Investment Committee to consider / review

investment of OPF funds.

The Income from Investments and other resources are Taxable.

v. Annual Statutory Audit and Government Commercial Audit

Arrangement for annual statutory audit and government commercial audit.

Provision of records and related information to the Auditors for conduct of

audit.

Settlement of audit observations, if any.

Coordination with the Ministry for Public Accounts Committee meeting.

vi. Taxation

Filling of annual tax returns.

Pursuance of taxation matters with relevant authorities and courts

Guidance to Divisions / Offices on tax matters.

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Coordination with OPF Tax Consultants.

vii. Distribution Of UNCC Claims to Gulf War Effectees

Maintenance of foreign currency and local currency bank accounts for UNCC

funds.

Maintenance of record for receipt of funds from UNCC.

Maintenance of record for disbursement of claims to the beneficiaries

Preparation of cheques in favor of the beneficiaries.

Financial verification of the cases, before release of cheques.

Financial management of UNCC funds to earn profit.

1.1.2 OPF Investment Committee (OIC)

OPF Investment Committee (OIC) was constituted by OPF Board of Governor in its 83rd

meeting held on 22nd April, 2002. The committee was re-constituted in 90th Board meeting

held on 13th May, 2004 consisting of the following:

Managing Director, OPF - Chairman

Senior Joint Secretary, Ops Division - Member

Member BOG - Member

Member BOG - Member

Member BOG - Member

Director Finance, OPF - Member/ Secretary

1.1.3 Functions of OPF Investment Committee (OIC)

To identify attractive and safe investment avenues, plan and submit proposals to

the BOG.

To decide about long term investment of funds.

To submit investment reports for information of BOG.

i. Investment Policy

OPF Investment Committee has been considering the proposals for placement / investment of

OPF Funds in private banks and Government securities in the light of instructions / policy on

banking facilities for public sector enterprises and local / autonomous bodies issued by

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Government of Pakistan, Finance Division (Regulation Wing) vide its Office Memorandum

No.F.4(1)/2002-BR.II dated 2nd July, 2003.

ii. Working Balances

Bank / financial institutions taking a deposit should have a minimum A rating (long

term);

Selection of banks/(s) should be transparent. The selection of the bank/(s) as well as the

terms of deposits will be approved by the concerned Board of Directors / Governing

Body on the basis of competitive bids from at least three independent banks;

In cases where total working balance of an enterprise exceeds Rs.10 million, not more

than 50% of such balance shall be kept with one bank;

In case the rating of the deposit taking bank drops below A the new deposits will be

shifted within a period of one month and old deposits within a period of two months to

a bank/(s) with at least A rating; and

Working balance limit of each organization should be determined with the approval of

administrative ministry in consultation with Finance Division. The account of this

working balance may be maintained in a current or saving bank account.

Surplus Funds.

Public sector entities are allowed to invest 20% of the total funds under management in

the non-government securities / TFCs / shares. Eligibility criteria of non-government

investment instruments will be as follows:-

Non-government debt instruments should have a major rating category of A and

above;

Public listed shares/units should have a total return comprising the dividend paid and

appreciation in value, which exceeds the average six months Treasury Bills rate for the

last three years.

managed by the public sector entity, whichever is lower; and

Investment in shares of Greenfield project/companies will not be eligible.

Initial Public Offerings (IPOs) of shares of existing companies should have a track

record of three year profitability at least equal to the average of twenty best performing

companies on Karachi Stock Exchange;

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iii. Others

Setting up of an in house Investment Management Unit for assistance of the

Investment Committee.

Use of the services of professional fund manager approved by SECP.

Principal Accounting Officer of the Ministry concerned will be responsible for

the implementation of the instructions.

Chief Executive of PSE/Local Autonomous Bodies will be required to issue a

certificate on annual basis that the instructions are being followed in respect of

the working balance and surplus funds of the organization.

2. My Learning Experience at OPF

2.1 DUTIES

While during internship in Overseas Pakistanis Foundation all of the internees are given periodical rotator y

assignments across the various Finance functions. And internees are liable to work on it during his/her whole

internship period.

2.2 Week IST

In the first week in order to have acquaintance with the organization and to understand the processes followed at

your concerned department a brief introduction is given by each staff member of his/her job responsibilities and

activities. These include:

Head Office Payments

Regional Offices Accounts

Salary Accounts

Provident Fund/Gratuity

Welfare Accounts

Housing Accounts

Educations Accounts

P&MC Accounts

Internal Audit Accounts

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2.3 Week 2nd

After the first week I was given the following assignments one after one and I was to submit the findings in the

form of report to the concerned supervisor. During my internship period I was given the following assignments:

Assignment Nature

Head Office Accounts

Regional Offices/IAD/P&MC & Welfare Accounts

Provident Fund/Grautity & Salary

Investment

i. Head Office Accounts:

(Lutrur Rehman/DD-Fin)

All the internal & third party payments after approval from the concerned authority is made by

this section & includes:

Cash Payments against Employee Claims

Cheque/Debit Authority Payments against employee claims

Cheque/Bank Remittal Payment to third parties

Posting to General Journal Books

Trail/Bank Reconciliations

Submission of Taxes

Fixed Assets record maintenance

Scheduling the accounts

ii. Head Office General Ledger (G/L)

(Deal by Syed Adil Masood & Supervised by Mr. Ltfur Rehman)

The main activities perform by Mr. S.Adil Masood using Sidat Hyder Financials are:

Prepare and input journal Entries the general entry sheet is used for journal entries of all the

departments but each department has their own heads.

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Prepare and allocate debit Notes to from other location they receive the debit notes from head

office, then they allocate to the concerned department.

Reconciliation of Account current they check the trial once a month but the concerned department

must enter their data into system. Otherwise the reconciliation cannot be done.

Prepare monthly schedules the monthly schedule deals mostly in rent, insurance, wages, fixed

assets etc.

Coordinate interim/ Final Audit The audit is done mostly when the month of June ends. So the

audit team visits in afterwards. International audit is done after every year .the auditors visit the

finance department. They check all the operations done in past.

2.4 Week 3rd

Regional Offices/IAD/P&MC:

(Maintained by Mr. Haider Abbas & Supervised By Lutrur Rehman/DD-Fin):

All the internal & third party payments after approval from the concerned authority made at the

Regional Offices is maintained in the database by this section & includes:

All the activities highlighted in Head Office accounting practices.

Consolidation of Fixed Assets (using straight line method)

Submission of Monthly, Quarterly & Annual Tax statements

iii. Welfare Accounts

(Deal by Mr. Khalid M. Khokhar & Supervised by Mr. Khalid Ramazan/DD-Fin)a. Functions

Membership Cards

Emergency Relief Cell

Flood Camps

Eye Camps

Earthquake Camps

War effectees Welfare Projects

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Eye Hospitals

Financial Aids

All the internal & third party payments after approval from the concerned authority made at the

Head office, Emergency Cells, Eye Hospitals is maintained in the database by this section &

includes:

All the activities highlighted in Head Office accounting practices.

2.5 Week 4th-5th

i. Gratuity

(Deal by Mr. Shaoib Baqa & Supervised by Mr. Muhammad Arif Hussain/DD-Fin)

Gratuity is a voluntary extra payment made to certain service sector workers in addition to the

advertised price of the transaction. Such payments and their size are a matter of social custom.

Gratuity varies among cultures and by service industry.

a. Accomplishments

I learned to prepare the computerized data of all the employees of OPF including, head officeRegional offices and schools for the year July 2008 to June 2009. After preparing the raw data

the next step was to verify that all the employees were included or not from the records of

salary. The data include the names of employees, their respected grades, basic pay and then net

pay after all deductions. The data was prepared separately both for executives and non

executive employees.

After all the verification the final data was entered in their special computerized programme

made for Gratuity.

ii. Employees Provident Fund

(Deal by Mr. Shaoib Baqa & Supervised by Mr. Muhammad Arif Hussain/DD-Fin)

EPF grants employees retirement benefits via a body that is intended to manage their savings.

The EPF is intended to help employees from both private and non-pensionable public sectors

save a fraction of their salary in a lifetime banking scheme, to be used in an event that the

employee is temporarily or no longer fit to work. The EPF primarily applies to retirement, but

sickness, disabilities or unemployment are also covered. The EPF also provides a framework

for employers to meet legal and moral obligations to their employees.

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As of 2009, the EPF functions by procuring at least 10% of each member's monthly salary and

storing it in a savings account, while the member's employer is obligated to additionally fund at

least 10% of employee's salary to the savings at the same time. While in savings, a member's

EPF may be used as investments for companies deemed profitable and permissible by the

organization, from which dividends are banked to respective members' accounts.

a. Accomplishments

I learned to prepare the computerized data of all the employees of OPF including, head office,

regional offices and schools. After preparing the raw data the next step was to verify that all the

employees were included or not from the records of salary and deductions. The data include thenames of employees and employer and employees contribution for provident fund. The

contribution includes 10% deduction from both of the parties. The data was prepared separately

both for executives and non executive employees.

After all the verification the final data was entered in their special computerized programme

made for CPF.

iii. Salary Accounts

(Deal by Mr. Sajid Amin & Supervised by Mr. Khalid Ramadan/DD-Fin)

The salary section works on:

Salary Accounts of Head Office/Regional Offices/Projects

Loans Accounts of Employees

Payment of Taxes

Payables & Receivables Record

a. Salary Generation Process

The salary is generated using Oracle financials software developed by Sidat Hyder Morsheed pvt ltd.

Salary id disbursed on monthly basis & is transferred to each employee bank account along with the

salary slips

Taxes statements are generated respectively.

Adjustment of advance salary & loans accounts are maintained & settled by this department on

monthly basis.

2.6 Week 6th

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i. Investment

(Deal by Mr. Kamran Tehsin & Supervised by Mr. Muhammad Arif Hussain/DD-Fin)

Sources of Funds:

Welfare Division Funds

Membership Fee

Income from hospitals

Income from welfare funds invested

Education Division Funds

Fee

Income from educational division funds invested

Housing Division Funds

Income from sale of Plots

Income from housing division funds invested

ii. Investment Decision/Criteria

Bank / financial institutions taking a deposit should have a minimum A rating (long term).

Selection of banks/(s) should be transparent. The selection of the bank/(s) as well as the terms

of deposits will be approved by the concerned Board of Directors / Governing Body on the

basis of competitive bids from at least three independent banks.Working balance limit of each

organization should be determined with the approval of administrative ministry in consultation

with Finance Division. The account of this working balance may be maintained in a current or

saving bank account.

Non-government debt instruments should have a major rating category of A and above;


appreciation in value, which exceeds the average six months Treasury Bills rate for the last

three years.


appreciation in value, which exceeds the average six months Treasury Bills rate for the last

three years. Managed by the public sector entity, whichever is lower; and Investment in shares

of Greenfield project/companies will not be eligible. Initial Public Offerings (IPOs) of shares

of existing companies should have a track record of three year profitability at least equal to the

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average of twenty best performing companies on Karachi Stock Exchange; Setting up of an in

house Investment Management Unit for assistance of the Investment Committee. Use of the

services of professional fund manager approved by SECP. Principal Accounting Officer of the

Ministry concerned will be responsible for the implementation of the instructions. Chief

Executive of PSE/Local Autonomous Bodies will be required to issue a certificate on annual

basis that the instructions are being followed in respect of the working balance and surplus

funds of the organization.

2.7 HOW EXPERIENCE IMPACTS MY CAREERWell my first professional exposure at OPF was a fantastic experience I learned a lot about the professional and

corporate life. And every staff member was very much cooperative and friendly. Besides this I have been

working with other internees, which was another excellent exposure to professional world. It can never be denied

that the things which are learnt thorough demonstration are never forgotten and thats what internship is all about.

It makes you professional; aware you of time management, how-to discuss anything with upper management or

lower management. Internship is a step to the professional world while in the midst of your studies. It brings

commitment and professionalism in ones life and makes one prepare for the thick and thin of future life

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CHAPTER # 4

Financial Analysis

1. Ratio Analysis of the Organization

1.1 Liquidity Ratios

i. Current Ratio

Current ratio is calculated as current assets divided by current liabilities. It shows a firms

ability to cover its current liabilities with its current assets.

Quick Ratio

Acid Test Ratio is calculated as current assets fewer inventories divided by current liabilities. It

shows a firms ability to meet current liabilities with its most liquid (quick) assets.

Year 2009 2008

Current Ratio 11.75 11.42

Quick Ratio 2.86 2.01

Formula = Current Assets

Current Liabilities

Formula = Cash + Short-Term Investments + Receivables

Total Current Liabilities

Interpretation

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In the year 2009, the Current ratio was 11.75:1 which indicates that as compared to previous

years, in this year the position of the foundation is better. It is important to note that a high

current ratio is indicative of good management practices.

While the Quick ratio is the refinement of current ratio. To arrive at this point, we need to

deduct short term investments and receivables from the current assets as it blocks the cash

requirement of the company. This is the most liquid point where organization can easily gauge

that how well organization has ability in cash to pay its short term requirements. This ratio also

shows an increasing trend.

2. Leverage Ratio2.1 Debt Ratio

This ratio measures the proportion of total assets financed by the firms creditors.

Year 2009 2008

Debt Ratio 0.24 0.28

Formula = Total Liabilities

Total Assets

Interpretation

Higher this ratio greater amount of other people being used to generate profits, also mean more

financial leverage a firm has. Less leverage leads to strong equity position. This ratio also

called debt to asset ratio. In year 2009 the ratio decreased which shows the good sign of

management practices.

3. Asset Utilization/Turn-over Ratio

3.1 Total Asset Turnover Ratio

It measures relative efficiency of total assets to generate revenue.

3.2 Total Fixed Asset Turnover Ratio

It measures relative efficiency of fixed assets to generate revenue.

Year 2009 2008

Total Asset Turnover -0.019 -0.004

Fixed Asset Turnover -0.353 -0.077

Formula = Net Sales/Income

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Total Asset

Formula = Net Sales/Income

Average Fixed Assets

Note: As the foundation has no sales account so total income is considered as sales.

Interpretation

Total asset turnover ratio measures the ability of the foundation to generate revenue through

the use of assets. It also includes that how much revenue contribution involved in the whole

business of the foundation. As per above figure, total Asset Turnover Ratio of the foundation is

increasing in a negative way, which is not a good sign, due to deficit in both years.

The fixed asset Turnover Ratio measures the firm ability to make productive and optimum

utilization of its assets or property. It should be high one, OPF performance in this regard is not

satisfactory as its fixed assets turnover ratio in the year 2009 is decreased as compared with

previous year due to deficit.

4. Profitability Ratios

4.1 Operating Expenses/ Revenue

This ratio signifies the proportion of the revenues that is used to cover the operating expenses

of the foundation.

4.2 Return on Assets

This ratio indicates the profit earned by the foundation on the total assets employed.

Year 2009 2008

Operating Expenses/ Revenue (%) 115 101

Return on Assets (%) -1.95 -0.43

Formula = Operating Expenses

Net Revenue

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Formula = Net income after taxes

Total Assets

Interpretation

Operating Expenses/Revenue ratio is showing that foundation is not earning sufficient

amount of revenues to meet the expenses of the operations operating on behalf of foundation.

As from the figures Return on assets ratio in year 2009 is less than that of balance in year

2008 which means that foundations return on assts in not satisfactory due to deficit

5.Capital Adequacy Ratios

5.1 Capital Funds to Total Assets Ratio

Year 2009 2008

Capital Funds to Total Assets Ratio 12.43 12.37

Formula = Capital Funds

Total Assets

Interpretation

This ratio indicates the extent of the funds employed by the foundation in the total resources as

shown in the balance sheet. This ratio has been increased in the current year with a very low

margin. For All Ratios References: (See Appendix 2 & 3).

2. Vertical and Horizontal Analysis of Organization

2.1 Vertical Analysis

An analysis of percentage financial statements where all balance sheet items are divided by

total assets and all income statements items are divided by net sales or revenues.

In addition to other financial ratios over time, it is often useful to express balance sheet items

and income statement items as percentages. Common size Analysis, also called Vertical

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Analysis, or Component Percentage, or 100 percent Statements as each statement is reduced to

the total of 100 and each individual item is stated as a percentage of the total of 100.

VERTICAL ANALYSIS OF THE BALANCE SHEET

2009 2008

ASSETS IN % IN %

NON CURRENT ASSETS

PRORETY,PLANT & EQUIPMENT 5.53 5.63

INTENGIBLE ASSETS 0.03 -

WORK IN PROGRESS ( HOUSING) 22.89 -

LAND AND DEVELOPMENT COST OF

HOUSING SCHEMES - 28.09

INVESTMENT IN OPF GIRLS COLLEGE 2.23 2.25

LONG TERM INVESTMENT 23.68 24.37

INVESMENT IN SUBSIDIARY 0.00 0.00

LONG TERM LOANS ADVANCES 2.86 2.39

LONG TERM DEPOSITS 0.03 0.03

CURRENT ASSETS

STORES 0.04 0.03

LOANS AND ADVANCES 0.79 0.65SHORT TERM PAYMENTS 0.51 0.53

ACCRUED INTEREST 1.80 1.28

OTHER RECIVABLES 3.98 3.21

SHORT TERM INVESTMENTS 30.07 29.11

TAXATION RECOVERABLE 2.01 1.52

CASH AND BANK BALANCES 3.55 0.92

TOTAL 100 100

LIABILITIES 2009 2008

IN % IN %

FUND AND RESERVE

WELFARE FUND 63.37 59.66CAPITAL RESERVE 0.00 0.00

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SPECIAL RESERVE (UNCC) EXCHANGE

FLUCTUATION RESERVE 0.22 0.22INTEREST ON UNCC DISBURSMENT BANK

ACCOUNT 11.87 11.76

REVALUATION RESERVE 0.34 0.39

NON CURRENT LIABILITIES

ADVANCES RECEIVED FROM PLOTS - 24.14

PROGRESS BILLING-HOUSING SCHEMES 19.06 -

EMPLOYEES COMPENSATED ABSENCE 0.82 0.57

DEFERRED TAXATION 0.68 -

CURRENT LIABILITIES

TRADE AND OTHER PAYABLES 3.59 2.45

PROVISION FOR TAXATION 0.04 0.81

TOTAL 100 100

Reference: (See Appendix 2)

Interpretation of Assets

In 2009, on one hand non current assets are increased due to increase in work in progress of

housing schemes. Advances have also increased from 2.39% in the previous year to 2.86% in

the current year which may indicate that the foundation utilize the funds raised in the other

activities primarily lending to the financial institutions as it is the most secure source of

financing available in the economy.

On the other hand in current assets Cash, short term investment, accrued interest is also

increasing. The property plant and equipment of the foundation is showing a little portion of

the foundations total assets.

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In the last the foundation is over all showing a good financial health and is going on healthy

tracks in near future it has no risk of bankruptcy. Although the foundation is showing good

results but we cant say that these are the best conditions prevailing in the foundation as we are

unaware of the market conditions and cant compare it with other welfare organizations.

Interpretation of Liabilities

The liabilities and capital reserves are side components of the foundation showing the

relationship as compared with the total of the liabilities and capital reserves. The welfare fund

is showing more percentage than the previous year by 3.71%. However it is also evident from

the data that the progress billing housing schemes, deferred tax and payables are increasing.Reference: (See Appendix 2).

VERTICAL ANALYSIS OF THE REVENUE AND EXPENDITURE ACCOUNT

2009 2008

IN % IN %

REVENUE

INTEREST ON WELFARE FUND BANK

DEPOSITS -265.93 -1171.89

HOUSING DIVISION -0.08 -59.32

WELFARE DIVISION -2.04 -13.08

TRAINNING DIVISION -0.16 -2.28

EDUCATION DIVISION -140.42 -545.84

PUBLICITY AND MARKETING CELL -0.26 -1.27

SERVICE CHARGES- UNCC -0.78 -62.77

OTHER INCOME -38.57 -172.61

EXPENSES

HOUSING DIVISION -19.07 -62.61

WELFARE DIVISION -55.48 -366.92

TRAINING DIVISION -6.93 -66.36

EDUCATION DIVISION -174.33 -695.48

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PUBLICITY AND MARKETING CELL -9.42 -30.56

ADMINISTRATIVE EXPENSIS -187.56 -748.65PROVISION FOR EARNED LEAVES -20.09 -37.56

PROVISION FOR GRATUITY FUND -42.38 -30.71

DEFICIT FROM OPERATIONS 67.04 9.80

PROFIT OF HOUSING SCHEMES -4.19 0.00

OTHER EXPENSES 0.02 0.09

DEFICIT BEFORE TAXATION 62.87 9.89

PROVISION FOR TAXATION

CURRENT -2.48 -90.11DEFERRED -34.66 0.00

DEFICIT AFTER TAXATION 100 100


Interpretation

The most important component of any organization is its revenue and expense account, which

shows its overall performance. As OPF is a welfare organization works for the betterment for

Pakistanis living abroad, so earning profit is not its main objective. However we observe that in

2009 the performance is not good as compare to previous year. The revenues increased little bit

but the expenses increased more than the previous year, which shows negative performance,

and organization showing a loss due to more gratuity payments and more deferred taxation.

Reference: (See Appendix 3).

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2.2 Horizontal Analysis

Trend Analysis, also called Horizontal Analysis of the financial statements is one directional-

upward or downward analysis and involves the computation of the percentage relationship that

each statement item bears to the same item in the base year.

HORIZONTAL ANALYSIS OF THE BALANCE SHEET

2009 2008 2007

IN % IN % IN %

ASSETS

NON CURRENT ASSETS

PRORETY,PLANT & EQUIPMENT 102.14

102.

72 100

INTENGIBLE ASSETS - - 100

WORK IN PROGRESS ( HOUSING) 82.57

116.

43 100

LAND AND DEVELOPMENT COST OF HOUSING

SCHEMES 124.57

100.

69 100

INVESTMENT IN OPF GIRLS COLLEGE 100.00

100.

00 100

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LONG TERM INVESTMENT 96.35

98.

48 100

INVESMENT IN SUBSIDIARY 100.00

100.

00 100

LONG TERM LOANS ADVANCES DEPOSITS 157.04

131.

96 100

CURRENT ASSETS

STORES 109.06

83.

64 100

LOANS AND ADVANCES, OTHER RECIVABLES,

PRE PAYMENTS & ACCRUED INTEREST 178.26

141.

82 100

SHORT TERM INVESTMENTS 110.08

105.

89 100

TAXATION RECOVERABLE 219.12

164.

03 100

CASH AND BANK BALANCES 333.12

85.

85 100

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Interpretation

First we discuss the assets side of the Organization. The performance in 2009 is much better

than previous years. In non current assets, the cost of housing schemes and long term loans and

2009 2008 2007

LIABILITIES IN % IN % IN %

FUND AND RESERVE

WELFARE FUND

132.1

6

123.6

1 100

CAPITAL RESERVE

100.0

0

100.0

0 100


FLUCTUATION RESERVE

100.0

6

100.0

6 100

INTEREST ON UNCC DISBURSMENT BANK

ACCOUNT

104.6

8

103.0

0 100

REVALUATION RESERVE

119.7

8

136.2

9 100


ADVANCES RECEIVED FROM PLOTS -

99.4

0 100

PROGRESS BILLING-HOUSING SCHEMES - - 100

EMPLOYEES COMPENSATED ABSENCE

145.3

7

106.1

0 100

DEFFERED TAXATION - - 100

CURRENT LIABILITIES

TRADE AND OTHER PAYABLES134.4

291.0

9 100


6.3

8

114.7

6 100

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advances are increased. In current assets all the item are increased. On the other hand in

liabilities the welfare fund is increased and revaluation reserves are decreased and in non

current liabilities the employees compensation and payables are increased at a huge amount

from the previous years. Reference: (See Appendix 2).

HORIZONTAL ANALYSIS OF THE REVENUE AND EXPENDITURE ACCOUNT

2009 2008 2007

IN % IN % IN %

REVENUE

INTEREST ON WELFARE FUND BANK DEPOSITS 186.34 180.77 100HOUSING DIVISION 36.84 60.52 100

WELFARE DIVISION 112.18 158.25 100

TRAINNING DIVISION 20.27 63.76 100

EDUCATION DIVISION 112.32 96.12 100

PUBLICITY AND MARKETING CELL 50.07 54.92 100

SERVICE CHARGES- UNCC 24.05 42.65 100

OTHER INCOME 132.62 130.67 100

EXPENSES

HOUSING DIVISION 129.76 93.79 100WELFARE DIVISION 98.72 143.74 100

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TRAINING DIVISION 53.39 112.48 100

EDUCATION DIVISION 120.61 105.93 100PUBLICITY AND MARKETING CELL 179.08 127.92 100

ADMINISTRATIVE EXPENSIS 121.26 106.55 100

PROVISION FOR EARNED LEAVES - - 100

PROVISION FOR GRATUITY FUND - - 100

DEFICIT FROM OPERATIONS -52.05 -36.74 100

PROFIT OF HOUSING SCHEMES - - 100

OTHER EXPENSES 47.04 47.04 100

DEFICIT BEFORE TAXATION -48.83 -39.69 100PROVISION FOR TAXATION

CURRENT 7.77 62.23 100

DEFERRED - - 100

DEFICIT AFTER TAXATION -24.96 -5.49 100


InterpretationThe performance of Organization is good both in 2009 and in 2008 with respect to revenue as

compare to 2007. As the amount of interest and income from education division and other

income showing profit, but on the other side the expenses are also increased from the same

speed in both years as compare to base year in almost every department and causes the deficit

and showing the negative performance, which is not a healthy sign.

Reference: (See Appendix 3).

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CHAPTER # 5

1. SWOT Analysis

1.1 Strengths of the Organization

Very good accounting system is in place.

A transparent system for assets acquisition is in placed.

There is proper internal control over purchase of assets acquisition.

Disposal through open auction is also very transparent.

Pick & drop facility to the employees of the Organization

Very effective platform to meet the Overseas Pakistanis from all over the world

Free Medical facility for employees.

Concession in tuition fee for the children of Overseas Pakistanis as well as

employees of Foundation.

1.2 Weaknesses of the Organization

Members of Board of Directors are not the employee of OPF.

Poor Planning regarding the recruitment of contract employees.

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Bad labor, management relations.

Promotion criteria are not excellent.

Lack of communication between staff and management.

Ideas and suggestions are not encouraged.

There is no concept of creativity.

Late coming of executive staff creates problems for non executive staff.

1.3 Opportunities of the Organization

Most of OPF Schools/Colleges are not running well, a careful planning and

interest can turn them into profitable institutions in future.

The higher authorities should take serious action to cut down extra

expenditures.

The new recruitment should be on merit.

They should improve the standard of services particularly for OPs.

Proper marketing techniques should be use to increase the revenue.

1.4 Threats of the Organization

The percentage of the Political influence of the employees in the foundation is

increasing as compare to the past five years.

The management should take serious action against the recruitment under

political influence.

OPF should take the serious action to increase the members (Overseas

Pakistanis)

The work on the housing schemes is very slow, try to work fast to keep and

increase the interest of the Pakistanis as well as Overseas Pakistanis.

Political influence.

2. PEST Analysis

PEST is the Acronym for:

P- Political

E- Economical

S- Social

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T- Technological

2.1 Political

The political situations are very important for proper working of any organization owned by the

Government of that country. Due to political instability and interference, the performance of

the organization decreases and that situation also leads to decrease in employees performance,

job commitment and efficiency e.g. political recruitments or references of the political and

influential people. As OPF is a government organization so it has a high political effect.

2.2 Economical

Economical situation are also very important for public owned organizations. When theeconomic conditions of the government are not in a good position the government is unable to

provide the required funds and not in a position to boost up the economic position of the

organizations to meet the inflation and other challenges. The OPF is providing economic

rehabilitation facilities to the Pakistanis living abroad e.g. Bila Sood Qarz Scheme, Financial

Aid Scheme and Settlement of Dues Cases etc.

2.3 Social

Socially when the productivity of publicly owned organizations increases the confidence of

employees and customers also increases, which help to build a good name and repute of the

organization which leads to more confidence, reliability and satisfaction, so it boosts up the

economy. As OPF is a welfare organization so it is involve in the social welfare of the

Pakistanis living abroad.

2.4 Technology

Technological advancements are very important to compete globally. From technological

advancement the work can easily be done, quality of services and products improved. The

technology safe the precious time of both, customers and employees. Customers are more

satisfied and customers loyalty also increased. OPF is now having an up to date technology for

the welfare of the Pakistanis living abroad.

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CHAPTER # 6

1. The Problems I Faced

1.1 Lack of Communication among the Employees

During the period of my internship I found this problem as a biggest problem that, employees

were not very effective in communication. They did not share the experience with each other

and did not care the other employees. If one employee had a problem, he asked from other, but

the other did not give clear solution to that problem. They used to show the facial expressions

against each other. They used to talk against each other in front of me. So, finally it is very

needy for a public services organization to keep atmosphere friendly among the management

and employees. In my opinion in Foundation there is lack of communication skills among the

employees.

1.2 Lack of Commitment

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Lack of commitment was also a big problem faced by the OPF. Employees were not committed

to the work and their duties. This was very common problem. Top management was also not

very committed to this Foundation. So, I finally concluded that there was a lack of commitment

from employees and top management.

1.3 Low Efficiency of Employees

Efficiency of employees was also low in this Foundation.

1.4 Not Very Regular and Punctual

Regularity and punctuality shows the character of a big and good executive. But this problem

was also faced by the OPF; many executives were not come at time.

1.5 Lack of Computing Skills

Computing skills were also low, some executive are very efficient in computing skills but some

were not totally aware from this system.

1.6 Misuse of Resources

Resource are very needy, so there must be avoid to misuse the resources but in this foundation

it was reverse case, there was very wrong use of the resources, employees did not take care of

resources and not used them in right direction. For example wrong printing, extra printing, after

service time.

Finally it is suggested that if these problems are solved there are much more chances for

increase the performance of OPF.

2. New Knowledge Acquired

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During the internship there is practical knowledge acquired about the field of finance. What

activities are performed by organizations and how to deal with public? Also commitment about

work and operations of organizations. Financing and credits and other public services are

performed by the organizations and much learns about the various executives experiences and

their skills. What is role of higher authority (manager) in decision making and how to solve the

problems? How much money or reserves are used to meet the requirements in the foundation.

Doing the internship was a wonderful experience for me but as far as preparation of the report

is concerned it was the most difficult part of the project. Preparing for report become most

difficulty and tedious as most of the information was not available not only on net but also

from the foundation also. I was unable to get the following material.

History of the Foundation

Accounts related information

Career ladder

Job description

I was fortunate to have wonderful Annual reports of the foundation. Especially it was rested

according to the circular of the Companies Ordinance 1984, therefore it was quite easy for me

to analyse the income statements of the foundation. There are some other necessary

requirements for doing the financial analysis of the income statements i.e.

Information about the trends prevailing in the market,

And information regarding the positions of the competitors of the foundation

that is the reason that I was unable to depict the true picture of the financial

position of the foundation.

I was also unaware about the off balance sheet finance of the foundation so, can

say nothing regarding the true liabilities of the foundation.

Anyhow, it was a very learning experience for me that I will never forget in my entire life.

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3. Recommendations

After spending six weeks at different departments of the foundation, interacting with the

employees, getting their views, observing the organizational structure and design, I have come

up with the following suggestions that in my view, will definitely improve a few weaknesses

observed in the foundation by me.

Members of Board of Directors must be employees of OPF.

Eliminate political influences.

Establish policy to accommodate the contract employees.

Improve CBA and Management relations.

Up-gradation / promotion criteria.

Need to reduce communication gap between executive and non executive staff.

The work on housing schemes is very slow, they should improve their

strategies.

Provide proper training to the staff.

They should improve the standard of services particularly for OPs.

Employees should be punctual and come on time.

Most of OPF Schools/Colleges are in huge deficit which create a lot of

problems in future.

The higher authorities should take serious action to cut down extra

expenditures.

Different computer training programs can enhance the employees performance.

Refresher Courses for the staff are most important in any international

organization. All the employees should have these courses according to their

requirements.

4. Conclusion

Overseas Pakistanis Foundation is a company limited by guarantee with the objects to advance

social welfare of the Pakistanis working abroad. According to my point of view there are many

deficiencies in the organization. They have poor recruitment and selection criteria to appointemployees. The main cause is management and political pressure. There is no concept to

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evaluate training need assessment of employees; training is given just after a fixed time by

management and to the some selected employees and departments. Performance is evaluated by

using some performance appraisal methods only, they should be change. Similarly no

motivation, appreciation is given to employees on excellent performance.

All Compensation and benefit of hardworking, capable, intelligent, willing worker and

incompetent employees are same. There is gap between officers and staff which is needed to

reduces immediately to establish friendly working environment, to exchange views, ideas, and

suggestions, to discuss the problems of organization freely.

Organization need to overcome its weaknesses and improve the performance of all thedepartments to enhance organizational performance, importance, and protect employees rights.

References and Sources used:-

PRIMARY DATA

Personal Observations.

Interview with OPF personnel.

Informal meetings with OPF personnel.

SECONDARY DATA

Internship Reports on OPF.

Journals and newspapers.

Unpublished documents available at each department.

Annual reports of OPF year 2008 and 2009.

OPF website (http:// www.opf.org.pk)

http:// www.google search.com

http:// www.wikipedia.com

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Annexure/Appendices

Appendix-1

Type

Of Plan

Contribution(Rs) Period OF

Contribution

Maturity

After

Expected Pension

Payment On

Maturity(Rs)/ PM

Plan - AA-01 120000 LUMP SUM 5 years 1541

A-02 120000 LUMP SUM 10 years 2482

A-03 120000 LUMP SUM 15 years 3997

Plan - BB-01 24000 Per Annum For

10 Years

10 years 3355

B-02 24000 Per Annum For

15 years

15 years 6689

Credit to members @ 10% per annum net of all costs

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Reference: -Admin record & www.opf.org.pk

Appendix-2

OVERSEAS PAKISTANIS FOUNDATION

BALANCE SHEET AS AT 30 JUNE 2008 & 2009

2009 2008

ASSETS RUPEES RUPEES

NON CURRENT ASSETS

PRORETY,PLANT & EQUIPMENT 216,924,683 219,381,239

INTENGIBLE ASSETS 1,213,868 -

WORK IN PROGRESS ( HOUSING) 898,105,000 -

LAND AND DEVELOPMENT COST OF

HOUSING SCHEMES - 1,095,232,336

INVESTMENT IN OPF GIRLS COLLEGE 87,647,127 87,647,127

LONG TERM INVESTMENT 929,472,563 950,003,849

INVESMENT IN SUBSIDIARY 110,200 110,200

LONG TERM LOANS ADVANCES 112,062,739 93,103,741

LONG TERM DEPOSITS 1,064,995 1,061,311

CURRENT ASSETS

STORES 1,763,299 1,352,177

LOANS AND ADVANCES 30,886,754 25,376,428SHORT TERM PAYMENTS 20,063,027 20,473,764

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ACCRUED INTEREST 70,562,408 49,986,733

OTHER RECIVABLES 156,246,909 125,131,218SHORT TERM INVESTMENTS 1,180,089,185 1,135,093,218

TAXATION RECOVERABLE 79,005,227 59,141,265

CASH AND BANK BALANCES 139,143,306 35,861,176

TOTAL 3,924,361,290 3,898,955,782

2009 2008

FUND AND LIABILITIES RUPEES RUPEES

FUND AND RESERVE

WELFARE FUND 2,486,946,553 2,326,060,387

CAPITAL RESERVE 156,250 156,250


FLUCTUATION RESERVE 8,648,754 8,648,754

INTEREST ON UNCC DISBURSMENT BANK

ACCOUNT 465,850,556 458,367,711

REVALUATION RESERVE 13,277,906 15,107,777


ADVANCES RECEIVED FROM PLOTS - 941,290,851

PROGRESS BILLING-HOUSING SCHEMES 747,879,505 -

EMPLOYEES COMPENSATED ABSENCE 32,185,913 22,139,966

DEFFERED TAXATION 26,582,906 -

CURRENT LIABILITIES

TRADE AND OTHER PAYABLES 141,074,658 95,593,633

PROVISION FOR TAXATION 1,758,289 31,590,453

TOTAL 3,924,361,290 3,898,955,782

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Appendix-3

OVERSEAS PAKISTANIS FOUNDATION

REVENUE AND EXPENDITURE ACCOUNTAS AT 30 JUNE 2008 & 2009

2009 2008

Rupees Rupees

REVENUE

INTEREST ON WELFARE FUND BANK DEPOSITS 203,981,761 197,886,619

HOUSING DIVISION 64,611 10,016,149

WELFARE DIVISION 1,565,400 2,208,217

TRAINNING DIVISION 122,534 385,320

EDUCATION DIVISION 107,705,069 92,170,858PUBLICITY AND MARKETING CELL 195,997 214,955

SERVICE CHARGES- UNCC 597,617 10,598,768

OTHER INCOME 29,582,383 29,146,532

343,815,372 342,627,418

EXPENSES

HOUSING DIVISION 14,628,433 10,572,849

WELFARE DIVISION 42,552,906 61,958,838

TRAINING DIVISION 5,318,970 11,205,375

EDUCATION DIVISION 133,720,047 117,438,573

PUBLICITY AND MARKETING CELL 7,224,776 5,160,605

ADMINISTRATIVE EXPENSIS 143867140 126,416,981

PROVISION FOR EARNED LEAVES 15413000 6,342,848

PROVISION FOR GRATUITY FUND 32,510,084 5,185,586

395,235,356 344,281,655

DEFICIT FROM OPERATIONS (51,419,984) (1,654,237)

PROFIT OF HOUSING SCHEMES 3,213,153 -

OTHER EXPENSES (15,000) (15,000)

DEFICIT BEFORE TAXATION (48,221,831) (1,669,237)


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CURRENT 1,899,154 15,216,843

DEFERRED 26,582,906 -

DEFICIT AFTER TAXATION (76,703,891) (16,886,080)

opf internship final

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